Russia has been making efforts to establish a direct trade payments system with India in rupee and ruble
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Russia has been making efforts to establish a direct trade payment system with India in Indian rupee (INR) and ruble, Russian Ambassador Denis Alipov said.
“Both India and Russia are thinking about a ruble-rupee trade mechanism,” Alipov was quoted as saying by The Indian Express.
Alipov also highlighted that “over cautiousness” of Indian banks is the “biggest challenge” rather than the exchange rate.
Indian banks ‘over cautious’ on rupee-ruble trade
India, however, has been more cautious, despite Russia’s push on de-dollarisation.
As per the report, due to the sanctions on Russia and the complexities around expansion of rupee-ruble trade, the Indian government and financial regulators of the country continue to be cautious with several proposals of Sberbank AG, Russia’s largest bank, still remaining uncleared.
US keeping eye on India-Russia transactions
Alipov also revealed that the United States has been “meticulous in tracking transactions between India and Russia” and has also been threatening sanctions.
It is therefore, he said, India and Russia are thinking about a ruble-rupee trade mechanism.
US may impose Russia-like sanctions on other Brics nations
Alipov slammed sanctions slapped on Russia by the US following Moscow’s large military operation in Ukraine since February 2022 and cautioned that similar action could eventually target other BRICS countries.
“Today it is Russia; tomorrow it could be China, and possibly even India,” he said.
According to The Indian Express report, Alipov also emphasised the need for India, Russia and China “to have an equal voice in various issues of global financial cooperation.”
“India’s voice should be taken into account, and, like the rest of the world, India has all capacities,” Alipov further said
More high-level visit between India & Russia on cards
Alipov also revealed that in the coming weeks, high-level visits are expected between Russia and India, including an inter-government dialogue scheduled for this November.
With inputs from agencies.
